The New York Times just had its 'single best quarter for subscriber growth'

(Reuters) - The New York Times Co <NYT.N> reported its
biggest quarterly revenue growth in six years, beating Wall
Street estimates, as digital subscriptions surged amid a media
storm triggered by the U.S. presidential election.

The newspaper publisher's shares rose as much as 12 percent on
Wednesday.

The company added 308,000 net digital news subscriptions in the
quarter, topping the previous quarter's tally of 276,000.

The Times has been building up on the online readership it gained
during the U.S. presidential election by marketing unbiased
reporting in the face of President Donald Trump's combative view
of traditional news media.

Trump has repeatedly criticized the press, including the Times,
calling it "fake news" and "the enemy of the American People!"

In response, the New York Times launched its "Truth" campaign,
including its first TV ad in seven years, urging readers to sign
up in order to support its fair and accurate reporting.

"Even the President of the United States was kind enough to draw
attention to it," Chief Executive Mark Thompson said on a
post-earnings call with analysts on Wednesday, referring to the
campaign.

New York Times' paid digital-only subscriptions stood at about
2.2 million at the end of the first quarter of 2017, soaring more
than 60 percent from a year earlier, and up 16 percent from the
end of the preceding quarter.

Thompson called the first quarter the "single best quarter for
subscriber growth" in the company's history.

Total revenue rose to 5.1 percent to $398.8 million, beating the
average analyst estimate of $381.96 million, according to Thomson
Reuters I/B/E/S.

Donald
TrumpAlex Wong/Getty
Images

"Helped by tailwinds from the political cycle, digital has been
increasingly offsetting the secular declines at the legacy print
business," Barclays analysts wrote in a client note.

Digital advertising revenue, which now makes up about 38 pct of
total ad revenue, rose 18.9 percent to $49.7 million.

Print advertising revenue continued to fall, down 17.9 percent to
$80.4 million in the first quarter.

The Times has been investing heavily to boost its digital
offerings that focus on mobile devices and brand marketing as
well as other services to lure readers.

Operating costs rose 4.5 percent to $367.4 million in the first
quarter. It has taken up cost-cutting measures, including layoffs
and shutting some Paris operations.

Net income attributable to the company was $13.2 million or 8
cents per share, compared with a loss of $8.3 million or 5 cents
per share, a year earlier.

Excluding one-time items, the company earned 11 cents per share,
beating the estimate of 7 cents.